A sponsored piece in the German press, published yesterday
https://www.boerse.de/nachrichten/IRW-News-Dr-Reuter-Investor-Relations-Dr-Reuter-Investor-Relations-Vanadium-Resources-Auf-die-Infrastruktur-kommt-es-an/34370936

IRW News: Dr. Reuter Investor Relations: Dr. Reuter Investor Relations - Vanadium Resources: It all depends on the infrastructure!

Thursday, 12/01/22 09:05

IRW PRESS: Dr. Reuter Investor Relations: Dr. Reuter Investor Relations - Vanadium Resources : It all depends on the infrastructure!

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Resource projects often suffer from poor infrastructure when located in remote locations. Poor access to roads, power or water increases costs and causes delays. Vanadium Resources is already planning the construction of its first vanadium mine and can benefit from a modern infrastructure in a prominent mining region.

The project itself, the management and the infrastructure - these are perhaps the most important criteria for investors who want to invest in a mining company. There are good projects in many places and good, experienced managers can also be found. However, the infrastructure often proves to be a major problem. Many resource deposits are nowadays found in remote regions. In densely populated areas, there are no permits for mining anyway. Therefore, areas such as the Yukon in Canada or in the Andes of Peru are the focus of many raw material exploration companies today.

But this is where the third criterion comes in. Road access is often not available, nor are there power lines anyway, and then camps often have to be built for the teams in order to be able to do any exploration at all. In some high-altitude regions, the workers also have to be flown in by helicopter or plane. In cold regions near the Arctic, it is usually not possible to work all year round.

All of this costs time and money, and quite a few raw material projects have failed because of the infrastructure hurdles. Poor infrastructure can make a mine uneconomical and therefore unaffordable. Vanadium Resourcesdoesn't have all these problems. The Australian company is developing one of the highest-grade vanadium deposits in the world. The management wants to secure the financing for the mine construction in the coming months and start construction in 2023.

In addition, the vanadium deposit called Steelpoortdrift is located in one of the most prolific mining regions in the world. The deposit is located in South Africa, northeast of the metropolis of Johannesburg. It is located within the mining jurisdiction of the Bushveld complex surrounding Vanadium Resources ' propertythere are power lines that guarantee the power supply. 10 kilometers south of the project, the De Hoop Dam was also completed in 2014. It improves the water supply in this area for households and industry alike. There are also paved roads surrounding the project, allowing for easy access and removal of the ore once construction is complete. Last but not least, the Busveld complex is also connected to the rail network at the Cape.

Vanadium Resources also benefits from the fact that there are already two vanadium mines in this region and that South Africa already has the greatest know-how for mining and processing the metal. Accordingly, there are also many service companies here, without which modern mining would not be possible anyway. Due to the density of mines, there are also enough workers to set up the operation.

A number of established mining companies also make use of these advantages. Multi-billion dollar corporations such as Glencore, Anglo American, Lonmin and Samancor are already active here. Vanadium Resourcesrecently submitted a final feasibility study for the project. The cost of construction is said to be just $211 million. With a planned annual free cash flow of USD 152 million, Steelpoortdrift has a net present value of USD 1.2 billion. This is compared to a market value of around 30 million Australian dollars today. In the coming months, management will work on financing the project and will present an offtake partner. Accordingly, there should be a high frequency of price-relevant news.

All DYOR